OKTA Earnings Iron Condor – CLOSED FOR 18% Overnight!

What’s the trade?  

9/2/21 – Just closed for 18% ROI overnight! I setup an automated GTC (“Good ‘Till Canceled”) order to close out the entire trade for 50% of the premium collected. In my case, this is a $134 debit, since I collected $266.

9/`1/21Earnings for OKTA is 9/1 (today) after the bell. We sold an Iron Condor in $OKTA for $266 credit.

What’s the trade?

With OKTA trading at 265 on 9/1

  • Buy the Sept 17 235 Put
  • Sell the Sept 17 245 Put
  • Sell the Sept 17 290 Call
  • Buy the Sept 17 300 Call
  • Premium: Try to collect at least $266.
  • Rationale: This is s defined risk trade. OKTA has earnings after the bell on 9/1 and has a decent IV Rank of 31%. After earnings, the Implied Volatility tends to go down and reduce the price of the short options you’ve sold. Max loss is $1,000 minus the premium collected.
  • Probability of making 133$: 71%
  • Assumption: Neutral
  • Timeframe: Overnight to 2 weeks.

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